Amendment of the Law

Charlie Elphicke Excerpts

Tuesday 29th March 2011 Commons Chamber

[Charlie Elphicke (Dover) (Con)]

It is a real privilege, as ever, to follow the right hon. Member for Salford and Eccles (Hazel Blears), who spoke so movingly and who is prepared and brave enough to set out an alternative—something that her Front Benchers are not courageous and bold enough to do.

I want to deal with the issue of poverty and the least well-off, and what this Budget does for people who struggle and do not have a lot of money. The previous Government were like a game of two halves. First, when Tony Blair was in charge between 1997 and 2001, they were a responsible Government who were quite effective in many ways, particularly when it came to fighting poverty. However, after that period, as the former Prime Minister increasingly got his hands on the levers of our public finances and wider economic policy, things started to go wrong.

It is against that backdrop that I am particularly keen to see the measures in this Budget succeed. It is not good enough that the 60% median for child poverty—relative poverty—went from 3.6 million in 2004-05 to 3.9 million in 2008-09, or that the number of those in deeper poverty went from 2.3 million to 2.6 million in the same period. That rise was really disappointing considering that the previous Government had pledged to take positive action on that problem. The problem is not just with child poverty; it is wider than that. The figures for all individuals show that 13.4 million people were worse off than the 60% median in 2000-01, and that in 2008-09, that figure was stuck at 13.4 million. To me, that is a real disappointment.

In this afternoon’s debate in the Welfare Reform Public Bill Committee, I raised what has happened to those who are of working age and are in poverty. According to the relative poverty measures, in 2000-01 6.5 million such people were in relative poverty, and that had risen to 7.8 million people by 2008-09. The second half of the game of two halves that was the previous Government was not a ringing endorsement of how we look after the least well-off in our communities. As we all know, the rising inequality in that period between those in the bottom quintile and those in the top quintile was a great shame. Over the whole period, inequality rose. That is a great shame.

I therefore welcome the measures in the Budget that aim to make work pay. That is the key message that we need to send. We are taking 1.1 million people out of tax altogether by increasing the personal allowance. We are helping and understanding by engaging in the issues of fuel duty and introducing the fair fuel stabiliser.

The most important measure is the universal credit. I am pleased to see from chart A.5 on page 78 of the Red Book that there is a clear plan that in 2012-13 the distribution will be such that the least well-off will be protected from expenditure decisions. I am pleased to see that the universal credit will make work pay. That is focused not on the middle classes who are on the fifth or sixth deciles, and who are frankly quite well off, relatively speaking, but on the least well-off, who are on the bottom two deciles. Too often under the previous Government, those people were sadly neglected. Those are the people who really need help and on whom we should focus. Those are the people for whom we should make work pay through incentives to enter work. What I particularly like about the universal credit, which is shown on pages 80 to 81 of the Red Book, is the real help for lone parents and first earners that was not there before. Those pages also show that the marginal withdrawal rate is under control, and that it will broadly incentivise work and make part-time work more possible and practical.

To conclude, I welcome the measures that should provide help on the issue of child poverty. The Budget measures are aimed at reducing child poverty by 50,000. That is really positive. I hope that as we come out of recession and out of the difficulties, things will start to improve for everyone across the board. However, we really need to look after the least well-off as best we can.